Afribank N100bn Public Offer Opens @ N25

Afribank N100bn Public Offer Opens @ N25

 

With prospects of superior returns to shareholders, Afribank Nigeria Plc today opens its N100billion Public Offer to the investing public for subscription. The Bank is making available 4billion Ordinary shares of 50kobo each at N25.00 per share for both individual and institutional investors.

 

The Bank is accessing the capital market to raise funds to strengthen its competitive capacity, sustain the fast pace growth and position it to play greater role in the banking industry.

 

Specifically, the Bank will utilize the proceeds of the Offer for strategic business development, recapitalization of subsidiaries, IT systems upgrade, training, increase in working capital, offshore expansion among others. This is to ensure holistic and organic growth of the Bank.

 

Market analysts believe that the future price movement of Afribank stock is assured by management\'s ability to create shareholders value through increased profitability and by implementing the growth strategies.

 

The Bank demonstrated its capacity to sustain its fast pace growth by announcing last week N8.11billion Profit Before Tax (PBT) for its half year operations ended on September 30th 2007. The result is a 187% quantum leap from the PBT of N2.82billion it recorded in the corresponding period of 2006.

 

The Bank also grew its Gross Earning by 102% to N19.48billion form N9.65billion in September 2006. The higher margin in the PBT is a manifestation of the Bank\'s high level of efficiency, good assets mix and profitable deployment of resources. Other fundamentals of the Bank recorded similar growth during the half year.

 

The bank has recruited numerous younger, vibrant, and energetic staff that will assist the bank in achieving and delivering superior earnings performance. Management believes that the bank has a strong clientele base and the bank is implementing aggressive strategies to acquire and retain new customers.

 

Afribank possesses some investment friendly statistics and strengths which should endear discerning investors to patronize its Offer. They listed factors such as quality banking experience, good brand recognition, stable board, sound management, diversification, spread, pioneering status, information technology large and loyal clientele, wide products & services, ethical and huge potentials.

 

“Our Bank is presently implementing a broad strategic plan that has continued to yield positive results with prospects of good rewards to our stakeholders. We want to ensure that the remarkable growth taking place is sustained”, Mr. Sebastian Adigwe, the Group Managing Director of  Afribank stressed.

 

Mr. Adigwe assured that Afribank solid structures have aided its transformation and growth. The Bank has expanded its market share especially in the areas of e-banking, big tickets transactions, product development and partnership with public sector institutions.

 

While inviting investors to take unique advantages of the Bank\'s current Public Offer, Mr. Adigwe assured that “the Management will continue to improve the net-worth of Afribank and the fortunes of its stakeholders. We promise good earnings through capital appreciation, good dividend and bonuses”.

 

Shareholders associations throughout the country are already mobilizing their members to increase their holdings in Afribank.

 

Mr. Akintunde Asalu, a President of the Independent Shareholders Association of Nigeria, at the Completion Board Meeting of the Bank last week endorsed the Afribank Offer and “recommend it to investors to subscribe massively to it”.

 

Mr. Sunny Nwosu and Mr. Boniface Okezie, president of the Solidarity and Progressive Shareholders Associations respectively canvassed for pubic support of the Offer.

 

Afribank went to the capital market last in October 2004 during which it raised N17billion. The Offer price of the bank then N6.80Kobo had recorded 442.5% appreciation in just three years at N36.89kobo in August 2007. The Bank also gave a one for five bonus share and paid 30k per share dividend to shareholders for the financial period ended 30th March 2007. - ThisDay


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